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<div class ="TITLEFORM">EXTERNAL COMMERCIAL BORROWING</div>
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  <p> Borrowing and Lending in foreign currency and Trade credits play a vital role in the commercial transactions. Said facility is covered under FEM (Borrowing or Lending in Foreign Exchange), regulations 2000.</p><br>
  <p> A person resident in India otherthan a branch or office in India established by a person resident outside India is allowed to raise Foreign Currency loans or avail Trade Credit under automatic route and approval routes vide Notification 126 dated 13th December, 2004. At present Indian corporates in real sector-industrial sector, service sector (hotel, hospital and software), infrastructure sectors, financial intermediaries, industrial finance companies, Micro finance institution carrying on micro finance activity, Small industrial development bank, NGO/ Micro Finance Institutions/Sections 25 companies/NBFC carrying on MFI activities are recognised as eligible borrowers. The extant regulations provide for eligible lenders, the limit of loans, provide end use restrictions, percentage of interest, period of loan, security, refinancing of existing debt and other incidental matters. </p><br>
  <P> Indian Companies are allowed to access overseas funds in the form of ECB, Foreign Currency Convertible Bonds (FCCB), Preference Shares (non convertible, optionally convertible or partially convertible) and Foreign Currency Exchangeable Bonds.</P><br>
  <P> If you wish to seek our guidance or advice, please click on the link below and fill the required information for us to respond to your queries. (Only for registered users)</P><br>

  
<a href="#" onclick="ShowBodyUiApplication('Postyour~ECB')"><u>Query- External Commercial Borrowing.</u></a>

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